Through his Truth Social platform President Donald Trump declared a total tariff on imported films because he believes the U.S. film industry faces a quick death from foreign production incentives. The Department of Commerce together with the U.S. Trade Representative will execute the tariff which Trump declared as a measure against foreign “messaging and propaganda” that he considers a national security threat.
The enforcement details are unclear because many films including Mission: Impossible — The Final Reckoning combine domestic and international production elements. The film industry in California experienced a 5.6% production decline in 2024 according to FilmLA because Canada and the UK and New Zealand provide tax benefits to attract filmmakers. The Minecraft movie produced in New Zealand achieved $777 million in revenue from $200 million in government subsidies which simultaneously boosted tourism numbers.
The Motion Picture Association which defends U.S. studios documented $22.6 billion in 2023 film exports that maintained worldwide market leadership. The Chinese film Ne Zha 2 achieved $2 billion in revenue primarily from domestic audiences while showing minimal success in the U.S. market. The UK’s Bectu union predicted a “knock-out blow” to freelancers while New Zealand Prime Minister Christopher Luxon supported his nation’s “world-class” film industry. The film industry faces additional challenges from COVID and 2023 strikes and Los Angeles wildfires according to NPR’s Eric Deggans who also warned that retaliatory tariffs might damage U.S. films in foreign markets.
